A new year beckons

As 2017 draws to a close we start to look forward into 2018 we can safely say that it is looking like an interesting year, but as a I look back on my columns from the previous two years I said exactly the same thing each year. They all looked interesting when looking forward from January. What will happen in 2018? Two things are certain. The first is that there will be events and circumstances that we can have influence on in our lives and the second is all the things in the world that we can’t. How much effort we attach to the first is our choice and how much angst we attach unnecessarily to the latter, is again our choice.

In a real estate sense, we cannot tell you exactly what will happen in 2018, but our impressions are that the low interest rate environment will continue to provide a platform for willing market participants to transact. We feel that the Melbourne and Sydney property markets are past their peak in this cycle, but that low interest rates and continued investment from overseas should see them land softly. We know that the Baby Boomers are now making decisions around retirement and this will continue to influence the lifestyle property market. That will come in all forms. Some will downsize, some will cash in, some will make decisions around future medical requirements, some will look around and decide to renovate. They have been the largest transacting demographic for some time and this will continue in 2018.

The normal owner occupiers will continue to make up the bulk of the market. These are people who are buying their first home or trading up or down to suit their personal circumstance or changing locations by necessity or choice. This, as all years, will not change.

Finally, there will be economic, social and political events that will occur in 2018 that will cause us concern. We know this, because it happens every year. As mentioned earlier, how much angst we choose to attach to these events is completely our choice. One thing is sure though, our level of angst will make no difference, so we may as well focus our efforts on what does make a positive contribution to our lives. Wishing you a fantastic Xmas and a prosperous 2018.

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